|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Mar 12, 2012||committee discharged and committed to rules|
|Mar 09, 2012||notice of committee consideration - requested|
|Jan 04, 2012||referred to corporations, authorities and commissions|
|Jan 28, 2011||referred to corporations, authorities and commissions|
senate Bill S2677
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2677 - Details
S2677 - Summary
Authorizes a public retirement system, as defined in section 501 of the retirement and social security law, mutual fund, or other institutional investor to bring actions for damages sustained due to the commission of certain prohibited and criminal acts in violation of the Martin Act (Fraudulent Practice in Respect to Stocks, Bonds and other Securities).
S2677 - Sponsor Memo
BILL NUMBER:S2677 TITLE OF BILL: An act to amend the business corporation law and the retirement and social security law, in relation to authorizing certain actions by institutional investors PURPOSE OR GENERAL IDEA: This bill would provide authority to large institutional investors, including the state's pension fund to bring actions for damages resulting from violations of the State's securities laws. SUMMARY OF SPECIFIC PROVISIONS: Amends the BCL and R&SS Law to allow mutual funds and institutional investors, and the state retirement fund to bring an action for damages as a result of violating state securities laws. JUSTIFICATION: As a result of recent corporate wrongdoings, trustees of large institutional investors such as mutual funds or the State's pension fund, have found themselves without remedy for damages and massive losses due to corporate violations of state securities laws. Under current law, the State attorney general has broad powers to prevent fraudulent securities practices, yet large institutional investors have no right of action when the state's securities laws are
S2677 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2677 2011-2012 Regular Sessions I N S E N A T E January 28, 2011 ___________ Introduced by Sen. RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the business corporation law and the retirement and social security law, in relation to authorizing certain actions by institutional investors THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The business corporation law is amended by adding a new section 631 to read as follows: S 631. ACTION BY CERTAIN MUTUAL FUNDS AND OTHER INSTITUTIONAL INVESTORS. (A) ANY MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR INCORPORATED UNDER THE LAWS OF THIS STATE OR WHICH MAINTAINS ITS PRINCIPAL PLACE OF BUSI- NESS IN THIS STATE, THAT IS DAMAGED IN CONNECTION WITH THE PURCHASE OR SALE OF A SECURITY AS A RESULT OF THE COMMISSION OF ANY ACT PROHIBITED BY SECTION THREE HUNDRED FIFTY-TWO-C OF THE GENERAL BUSINESS LAW, MAY BRING AN ACTION FOR DAMAGES AGAINST ANY PERSON, PARTNERSHIP, CORPO- RATION, COMPANY, LIMITED LIABILITY COMPANY, TRUST, OR ASSOCIATION THAT COMMITTED OR PARTICIPATED IN THE COMMISSION OF SUCH PROHIBITED ACT. (B) NO MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR THAT HAD FEWER THAN FIVE HUNDRED BENEFICIARIES AT THE TIME OF THE PURCHASE OR SALE OF THE SECURITY MAY BRING AN ACTION UNDER THIS SECTION. (C) WITH RESPECT TO ALLEGATIONS THAT A REPRESENTATION OR STATEMENT WAS FALSE, THE PLAINTIFF WITH RESPECT TO ALLEGATIONS REQUIRED TO PLEAD AND PROVE THAT THE PERSON WHO MADE SUCH STATEMENT: (I) KNEW THE TRUTH; (II) WITH REASONABLE EFFORT COULD HAVE KNOWN THE TRUTH; (III) MADE NO REASON- ABLE EFFORT TO ASCERTAIN THE TRUTH; OR (IV) DID NOT HAVE KNOWLEDGE CONCERNING THE REPRESENTATION OR STATEMENT MADE. WITH RESPECT TO ALLEGA- TIONS OF ANY OTHER NATURE, THE PLAINTIFF IS REQUIRED TO PLEAD AND PROVE THAT THE PERSON ACTED WITH NEGLIGENCE. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06099-01-1
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